Private Placement Memorandum

Protecting yourself, and your business, is extremely important, especially when you start involving other people, including investors. A Private Placement Memorandum can help protect you from legal issues should something happen to your company.

What is a Private Placement Memorandum?

A Private Placement Memorandum (PPM), or sometimes known as an Offering Memorandum (OM), is a legal document which states all of the objectives, risks, and terms of investment for a potential investor. Its purpose is to provide buyers with information on the offering, while protecting the sellers from liability.

Unlike a business plan, which is focused more on promoting the company and looking forward to the company’s future, a PPM serves primarily as a disclosure document. But both a business plan and a PPM should serve to interest investors, they just function in a different way.

Another term you might hear in a similar context is Prospectus. A Prospectus is a similar type of document, but it is used for public offerings, whereas PPM’s or OM’s are used for private placements.

Why Does a Business Need One?

A PPM is one of the best ways to protect yourself and your business by disclosing as much information about your company as possible. This defends you from potential lawsuits were something to happen to your business.

Having a quality PPM acts as a form of insurance. While it may not make a lawsuit go away, it functions as a protective layer if something were to happen. In most cases, an investor will request a PPM, and even if they do not, you should still provide one.

Our PPM Services

PlanIt Business’ team of professionals has experience creating PPMs, OMs, and Prospectuses. Through knowledge of financial, legal, and business matters, we are able to create a high quality document that provides the right information for potential investors.

Ready to protect your business with a thorough, high quality PPM? Contact us today by calling 800-894-0828 or by filling out our online form.